Florida homeowners already pay some of the highest insurance premiums in the country. If Florida carriers have their way, however, they may find themselves paying even more. According to an Insurance Journal article, the Florida Office of Insurance Regulation (OIR) is evaluating current filings with “substantial increases” of anywhere between twenty to forty percent. Insurers are legally required to present rate increases of over fifteen percent in rate hearings overseen by the OIR.
The reasons for these considerable increases are the same ones that have affected the insurance industry for years. The combination claims involving water losses, the assignment of benefits (AOB) fallout, and what’s called loss creep have been blamed for spurring a need to increase rates. Loss creep is the term used to describe mounting loss estimates and losses from previous events, such as a major storm.
Although reforms have been passed directly addressing AOB, insurers believe that existing claims may still require several years to achieve a resolution and will, therefore, result in short-term losses for insurers, therefore requiring rate increases.
To read more, visit https://www.insurancejournal.com/news/southeast/2020/02/25/559166.htm.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or an insurance lawyer Miami and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.